- Moneycontrol
Caveat Emptor: Bonds can burn you too
Many Indians are warming up to the idea of investing in bonds — both in India and abroad. Direct (government) bond investments are now possible through the Reserve Bank of India retail Direct online platform, brokerage firms, and even online bond platforms that have been established.
Disclosing the interest of individuals in bond platforms, PayTM mentioned in June 2023 that 85,000 people had checked out the company’s bond platform launched on May 22, 2023.
In simple terms, a bond is an investment contract, where the issuer (usually a company or the government) borrows money from individuals and organisations. In return the principal borrowed is repaid on maturity, while interest is repaid monthly, semi-annually, or annually.